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Memorandum - June 26, 2006

Human Resources has been notified by A+ Home and Auto Insurance Company ("A+") that it will no longer accept payroll deductions for home and auto insurance premiums. Because A+ made the decision and began contacting our employees prior to communicating with the University, we did not have a prior opportunity to notify our affected employees of the change. The last paycheck that will include a payroll deduction for A+ will be on August 18, 2006. You will be contacted by an A+ representative to explain your direct billing premium payment options, or you may contact A+ customer service at 1-877-411-4414.

Human Resources strives to ensure that the benefit programs we offer to our employees provide value at a competitive price. We have been working with an insurance advisor/broker to help us assess our short-term disability, life, and home/auto insurance providers. A+ has declined to provide the information requested to assist in a current program analysis. At no time during any discussions did A+ assert to the University that working with an insurance advisor/broker would result in increased employee premiums.

We are keenly aware of the importance of maintaining our employees' privacy and confidentiality. The sole data request we submitted to A+ was to confirm the accuracy of active employee participation (EID, name, and election choice of home and/or auto coverage), which A+ provided to us last October.

The State of Arizona is completing a competitive bid process for a provider for a new home/auto insurance benefit program for state employees, and expects to offer this program effective October 1, 2006. University of Arizona employees will be eligible to enroll in this program. Once the home/auto program details are announced, the information will be posted to the Human Resources web site at http://www.hr.arizona.edu.

When reviewing your options and preparing to purchase auto and/or home insurance, you may find it useful to visit the consumer resources web site of the Arizona Department of Insurance at http://www.id.state.az.us/consumerautohome.html.